Sbi Bluechip Fund Sip: Smart Investment Strategy

The SBI Bluechip Fund is a large-cap mutual fund that has been in existence for over a decade. It has provided investors with opportunities for long-term capital growth by actively managing investments in a diversified portfolio of large-cap equity stocks. With an asset under management (AUM) of over ₹53,000 crore, it is a popular choice among investors. The fund has an expense ratio of 0.8% and no lock-in period, making it accessible to those looking to invest for at least 3-4 years. However, investors should be prepared for potential moderate losses. The fund has delivered average annual returns of 16.58% since its inception and has doubled investors' money every four years.

SBI Bluechip Fund: Performance, portfolio and overview

The SBI Bluechip Fund seeks to provide investors with opportunities for long-term growth in capital through an active management of investments in a diversified basket of large-cap equity stocks. It has been mandated to invest at least 80% of its assets in large-cap stocks at all times. The fund has delivered 12.07% returns since its inception 18 years ago. As of 29 February 2024, it had invested 95.64% in equity, 4.24% in cash and cash equivalents, and 0.12% in debt. The fund has an expense ratio of 1.55%.

The SBI Bluechip Fund is suitable for investors who are looking to invest money for at least 3-4 years and are seeking high returns. However, these investors should also be prepared for the possibility of moderate losses in their investments. The fund has a very high-risk rating according to SEBI's Riskometer.

The latest NAV or Net Asset Value of the fund was 102.68 as of 14 October 2024. The fund has provided average annual returns of 16.58% since its inception. The fund has an exit load of 1% if redeemed within 1 year.

The top holdings of the fund include HDFC Bank Ltd., ICICI Bank Ltd., ITC Ltd., Infosys Ltd., and Reliance Industries Ltd. The fund has primarily invested in the Financial, Automobile, Consumer Staples, Technology, and Construction sectors.

SBI Bluechip Fund: Capital gains taxation

SBI Bluechip Fund is a mutual fund that seeks to provide investors with opportunities for long-term growth in capital through active management of investments in a diversified basket of large-cap equity stocks. The fund carries a "very high risk" rating as per SEBI's Riskometer.

When it comes to capital gains taxation, here are the key points to consider:

• Long-Term Capital Gains (LTCG): If you sell the mutual fund units after holding them for more than one year from the date of investment, the gains are taxed differently. Gains up to Rs 1 lakh in a financial year are exempt from tax. Gains exceeding Rs 1 lakh are taxed at a rate of 10%.
• Short-Term Capital Gains (STCG): If you sell the mutual fund units within one year from the date of investment, the entire amount of gain is taxed at a rate of 15%.
• No Tax on Holding: As long as you continue to hold the mutual fund units without selling them, there is no tax liability.
• Dividend Taxation: Dividends are added to the income of the investors and taxed according to their respective income tax slabs. If an investor's dividend income exceeds Rs. 5,000 in a financial year, the fund house deducts a Tax Deducted at Source (TDS) of 10% before distributing the dividend.
• Exit Load: There is an exit load of 1% if you redeem your investment within one year of purchase.

SBI Bluechip Fund: How to invest

SBI Bluechip Fund is a mutual fund that has been in existence for 11 years and 9 months, with an inception date of January 1, 2013. The fund seeks to provide investors with opportunities for long-term growth in capital through the active management of investments in a diversified basket of large-cap equity stocks. It is important to note that this fund has a very high risk level according to SEBI's Riskometer.

Step 1: Understanding the Fund

Before investing, it is crucial to understand the nature of the fund. The SBI Bluechip Fund primarily invests in large-cap equity stocks, with a focus on long-term capital growth. The fund has a very high risk associated with it, so investors should be comfortable with the potential for significant losses as well as gains.

Step 2: Evaluating Risk and Returns

When considering the SBI Bluechip Fund, it is important to assess your risk tolerance and investment goals. This fund has generated an average annual return of 16.58% since its inception and has doubled investors' money approximately every four years. While it has provided consistent returns, its ability to control losses during market downturns is above average.

Step 3: Analyzing the Fund's Holdings and Performance

Review the fund's top holdings and sectors to ensure they align with your investment preferences and goals. As of September 30, 2024, the fund had invested the majority of its assets in the Financial, Automobile, Consumer Staples, Technology, and Construction sectors. The top holdings include HDFC Bank Ltd., ICICI Bank Ltd., ITC Ltd., Infosys Ltd., and Reliance Industries Ltd.

Step 4: Determining the Investment Amount and Type

The SBI Bluechip Fund offers both SIP (Systematic Investment Plan) and lump-sum investment options. The minimum SIP investment is ₹500, while the minimum lump-sum investment is ₹5,000. You can choose the investment type that suits your financial situation and goals.

Step 5: Choosing a Platform

You can invest in the SBI Bluechip Fund directly through the website of the fund house, which is the SBI Mutual Fund website. Alternatively, you can use platforms like MF Central or MF Utility. If you prefer assistance, you can seek help from a mutual fund distributor, including most banks that also act as distributors.

Step 6: Completing the Investment Process

Once you have chosen a platform, follow the specific instructions provided by the platform to complete your investment. This may include registering an account, providing personal information, and making the investment through the chosen method (SIP or lump sum).

It is important to remember that mutual funds, including the SBI Bluechip Fund, are subject to market risks. Past performance does not guarantee future results, and investors should carefully consider their investment objectives and risk tolerance before investing.

SBI Bluechip Fund: Risk analysis

SBI Bluechip Fund is a large-cap fund that is widely used and suited to conservative investors. It has been assigned a "very high risk" rating by SEBI's Riskometer. This is due to the volatility of the fund's returns, as measured by its standard deviation value, and its performance compared to similar funds in the market, as measured by its beta value.

The standard deviation value indicates how volatile the fund's returns have been in the past three years. A lower value indicates more predictable performance. In this case, a lower value would mean there is a higher chance that the fund will continue to generate similar returns in the future.

The beta value indicates how volatile the fund's performance has been compared to similar funds in the market. A lower beta implies that the fund's performance is more predictable compared to similar funds. If two funds have generated the same returns, but one has a lower beta, that fund would be considered less risky and therefore a better choice for investors.

The Sharpe ratio, Treynor's ratio, and alpha are additional measures of risk that can be considered when evaluating the SBI Bluechip Fund. The Sharpe ratio indicates how much risk was taken to generate the fund's returns, with a higher value representing better risk-adjusted returns. The Treynor's ratio shows how much excess return was generated for each unit of risk taken, with higher values representing better risk-adjusted returns. Alpha shows how the fund generated additional returns compared to a benchmark, with a higher alpha indicating better performance.

Overall, while the SBI Bluechip Fund is considered very high risk, it is important to evaluate this risk in the context of an investor's specific goals, risk tolerance, and time horizon.

SBI Bluechip Fund: Returns analysis

SBI Bluechip Fund is a mutual fund that has been in operation for 18 years and 1 month. It has delivered 12.07% returns since its inception. The fund has a very high-risk rating and has no lock-in period. The expense ratio of the fund is 1.55.

As of 25-Mar-2024, the Net Asset Value (NAV) of the fund was ₹78.7130. The fund size, or the Assets Under Management (AUM), was ₹43,355 crore as of 29-Feb-2024. The fund has delivered average performance among its peers, with a 1-year return of 12.5% if sold after 1 year from the purchase date, and 20% if sold before 1 year. The fund has a large-cap focus, investing primarily in large-cap stocks, with some allocation to mid-cap and small-cap stocks.

The fund has a minimum Systematic Investment Plan (SIP) investment of ₹500 and a minimum lumpsum investment of ₹5,000. The fund can be purchased directly from the SBI Mutual Fund website or through platforms like MF Central and MF Utility.

Frequently asked questions